92003E0103

WRITTEN QUESTION E-0103/03

by Luciano Caveri (ELDR) to the Commission

(28 January 2003)

Subject: VAT on Italian road tunnel tariffs

Article 21(15) of the 2003 Italian Budget Law provides for the immediate application of VAT, at the standard rate of 20 %, to tolls collected for using cross-border tunnels. In this way, the 1972 decree under which tolls for using cross-border tunnels were exempt from VAT has been repealed, meaning that Italy, as the Commission had requested, has conformed to the Court of Justice's ruling of 12 September 2000 on this matter. The implementation of this decision has created a paradox both at the Mont Blanc tunnel between Italy and France and at the Gran San Bernardo tunnel between Italy and Switzerland. In the first case, the tariffs are 20 % higher on the Italian side because France has for some time been applying VAT to its tariffs, while in the second case there is no VAT in Switzerland and the tolls are therefore higher on the Italian side. These circumstances create a distortion of competition between companies operating the same tunnel and cause problems for users. How does the Commission view this situation?

Answer given by Mr Bolkestein on behalf of the Commission

(13 March 2003)

As the Honourable Member points out, Italy has complied with the Sixth VAT Directive(1) as interpreted by the Court of Justice in its judgments of 12 September 2000 on the taxation of tolls for the use of road infrastructure. Italy changed its legislation to abolish exemption from VAT on tolls for using cross-border tunnels following an infringement procedure started by the Commission.

As for the tunnel link with France, the Commission notes that it was the previous situation (collection of VAT in France and not in Italy) which might have caused distortion of competition (and which was the subject of a complaint), and not the other way round, since the two Member States now collect VAT for the same provision of services.

As for the link with Switzerland, it should be remembered that as that country is not part of the EU it does not have to comply with Community law on VAT. So the situation of tunnel operators is not comparable as they are subject to different laws and it cannot therefore be said that competition is being distorted.

Finally, the Commission notes that the Honourable Member's statement that these circumstances cause problems for users is too vague for it to be able to give an assessment.

(1) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes Common system of value added tax: uniform basis of assessment OJ L 145, 13.6.1977.